Luxury property rates in Dubai drop by 6% in the 1st quarter
It is interesting to see how some Dubai Luxury Properties have been getting cheaper over time, in a world where expensive real estate is the norm. The average cost of desired locations in Dubai fell by 6% during Q1 of 2022 with an average price of Dh 4.5 million average fees. This decline can be attributed to increased competition among the involved players. The Emirate’s premier residential market recorded 1 billion worth of new transactions during its first quarter. According to market analysts, the Emirate’s prime residential market saw a slight surge in volume in Q1 2022. The numbers or show a little over 1.03 per cent at Dh17.28 billion compared to the previous quarter. The analysis is based on data from the Dubai Land Department.
Around 5,258 apartments and 742 villas were sold in Q1 2022 in the Dubai prime residential market. The average sale price for a villa came close to Dh9.6 million. Mohammed Bin Rashid City ranked first in terms of sales volume, at Dh3.19 billion. Palm Jumeirah comes in second with a price tag of Dh 3.10 billion, followed by Downtown Dubai with a price tag of Dh 2.6 billion. The Jumeirah Islands area sales more than doubled from Dh90 million to Dh201 million, in the prime residential market. It was followed by Mohammed Bin Rashid City and Al Barari.
Due to the current market conditions, there has been an increase in involvement from continental European clients. It appears that buyers today want to sign their names on shell & core villas. Chris Whitehead, managing partner at Luxhabitat Sotheby’s International Realt, said, “The current market has seen a surge in activity from continental European clientele. Shell and core villas are among the highest demanded properties on which end users are looking to put their signatures on. Second only to off-plan branded residences which are reselling for highest premiums recorded so far-fetching price tags of up to Dh6,800 per square foot.”
The prime villa market increased volumes by 32.31 per cent quarter-on-quarter. It indicates increased villa purchases at a volume of Dh6.1 billion. The sales volume in the last quarter was Dh4.1 billion, with an average price of Dh10.6 million for a villa. The number of apartments sold fell by 10% to Dh10.9 billion. The average prime apartment now costs approximately Dh2.4 million and the average price per square foot of Dh1,431. Most popular areas to purchase apartments were Downtown Dubai, Business Bay and Palm Jumeirah.
According to Zoom Property Insights, Dubai’s luxury home market will continue to see high demand in 2022. It will also be supported by rising interest from international investors. Report indicate that the trends of luxury property investors are shifting towards spaces that are close to nature and waterfront communities with options of luxury apartments, pent house suites, multi storied villas and townhouses. This means properties offering a holistic experience with lush green spaces and high-end amenities and facilities now have a bigger more international audience in the Dubai property market.
The real estate consultancy said the post-Expo landscape looks “bright” for the emirate’s luxury home market. Ata Shobeiry, CEO at Zoom Property, said “The market, on the whole, will benefit from an influx of overseas investors as there’s an increase in demand from Ukrainian and Russian buyers as well”.